Economics, Econometrics and Finance
4 years ago

Firms Boost Exports by Aligning with Local Capabilities

2 views
HAL (Le Centre pour la Communication Scientifique Directe)
Local Product Space and Firm Level Churning in Exported Products
Çilem Selin Hazir, Flora Bellone, Cyrielle Gaglio

Paper Summary

The study looked at how firms change the products they export, focusing on how the local area influences these decisions. They used data from French firms in manufacturing from 2002-2007. The main finding was that firms adjust their exports to match the strengths of their region. When firms switch to new products, they make more money from products related to their region's core capabilities.

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